Traders frequently harbor an aversion to high priced stocks, however, that shouldn’t necessarily be the case. A perfect example would be a stock that I purchased for my portfolio on January 17 at 189.48. The stock was TNH (Terra Nitrogen) and I informed members of the trade through an Instant Alert as follows:
TNH produces nitrogen fertilizer products. Although the Group doesn’t appear to be among the top tier, TNH has a 7.55% dividend yield. The stock looks like it may be on the verge of clearing out of an ascending triangle form of congestion and begin moving higher.
TNH was a stock captured in the “Stocks on the Move” Watchlist of January 6.
TNH did break out of the triangle and as of this morning is up to 236.99 for a 25.07% gain in a little over a month.
Fortunately I wasn’t scared off by the stock’s high price. That high dividend yield is still locked in and looks even better now; the question now is whether to lock in the profit or let it ride? What say you?
But the way, I’ve added 17 stocks to my portfolio since the beginning of February in an effort to put more risk on the table. Members were alerted minutes after the trade for my own account is completed. If you’re interested in seeing what I’m doing for my own account, click on the Membership tab at the top or the Subscribe button below.